New Egypt Exchange/Reverse Auction

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This page is currently under construction and will change in future.

"A reverse auction is a type of auction in which the roles of buyers and sellers are reversed. In an ordinary auction (also known as a forward auction), buyers compete to obtain a good or service, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and prices typically decrease over time." [1]

The Exchange will, from time-to-time, conduct Auctions on behalf of Individuals. These will take the form of a Blind Reverse Auction. In essence a reverse auction is when the buyer defines what he/she requires and the sellers then bid how much they are prepared to sell the item for. The buyer will naturally take the offer that is cheapest, so the price will decrease over time. The Auction will also be Blind, meaning the bidders will not know the value of the other bids.

The procedure on the day of the Auction

The Auctioneer will start the auction by announcing it on the various public channels that accept trade related messages. The message will include the lot to be auctioned (commodity x amount) and a time period. All times will be measured in realtime by the Auctioneer's watch.

Bidders must then submit bids directly to the auctioneer (using a chat message). The bid must indicate how much NEX they want for the lot. The bidding will continue until the bidding period had expired. At that time the Auctioneer will announce the winning bid amount.

Note: The auction may have a limit amount. If no bids below the limit have been received at the close of bidding, the Auction will be canceled. An auction may also be extended or repeated at the discretion of the auctioneer.

The auctioneer will then contact the winning bidder directly to arrange delivery. This will either be at a face-to-face meeting, or using the drop-box system at one of our trading houses. The bidder must select the goods he will be trading for from the commodities the Exchange currently have on offer. This is published on the Current Trades page. If the bid amount cannot be matched exactly with the commodities on the Current Trades page, the difference will be settled in favor of the Exchange.

As an example: Assume that the winning bid was closed at 215 NEX. The winning bidder select to take 10 Cuttable Lapis and the rest as Large Topaz. The current price on the Current Trades page for Cuttable Lapis is 20 NEX and for Large Topaz is 7 NEX. The trade will then be settled at 10 Cuttable Lapis and 2 Large Topaz for a total value of 214 NEX. The remaining 1 NEX will be kept by the Exchange.

Can I ask the Exchange to conduct an auction on my behalf?

Yes, we will provide this service. Please contact the directors directly in this regard.

Note: You may be required to deposit some goods in advance as security. The Director will advise on the details of this.

Notes

The Exchange do not keep any stock and do not (currently) keep NEX balances for customers.

All trades are backed by the Directors.

The Exchange will aim to close all trades within 24-hours. If any of the parties to a trade do not respond within 24-hours to a request from a Director or Auctioneer, the trade will canceled.